Presidential Memorandum Issued to Expand Overtime Eligibility

Posted on 03.17.14

On March 13, 2014, President Barack Obama has issued a Presidential Memorandum to update the Fair Labor Standards Act (FLSA) under a directive entitled “Updating and Modernizing Overtime Regulations.” The potential costs for small business are unknown at this time but are expected to include additional payroll costs, increased oversight and management of employees, and potential litigation costs related to compliance with this change.

We expect the implementation of this directive will take time to execute. Some experts are anticipating at least 12 to 18 months for the development of the new rules. The Department of Labor (DOL) will be required to formally propose rule changes, will invite public comments for a specified period, and then incorporate any changes they deem necessary before changes to the FLSA can be implemented.

We will continue to monitor the status of this directive and will share relevant updates via our Keiter Blog. Please contact your Keiter team with any questions you may have on the impact of this proposed change to FLSA on your business.